Q2 2026 Saab AB Earnings Call

July 17, 2026

Speaker #2: Good morning, everyone, and welcome to the presentation of SAAB's report for the second quarter 2026. My name is Johan Andersen, responsible for investor relations, and I will be the moderator here today.

Johan Andersson: Good morning, everyone, and welcome to the presentation of Saab's report for the Q2 2026. My name is Johan Andersson, responsible for Investor Relations, and I will be the moderator here today. With me here in Stockholm, we have our CEO, Micael Johansson, and our CFO, Anna Wijkander. Micael and Anna will present the report, and thereafter we will start with the Q&A session. Remember that you can both ask your questions over the telephone, or you can post the questions in the web interface, and I will read them out here in Stockholm. With that, warm welcome, and I will hand over to you, Micael.

Speaker #2: With me here in Stockholm, we have our CEO, Michael Johansson, and our CFO, Anna Wikander. Michael and Anna will present the report, and thereafter we will start with the Q&A session.

Speaker #2: And remember that you can both ask your questions over the telephone, or you can post the questions in the web interface, and I will read them out here in Stockholm.

Speaker #2: So with that, a warm welcome, and I will hand over to you, Michael.

Speaker #3: Thank you, Johan, and also from my side, welcome to the second quarter report. Let's just dive into the highlights. Immediately, as you've seen, this was another strong quarter with lots of momentum on the business side, and what's been defining the quarter was, of course, the major contracts that we have received on the submarines in Poland and also the Gripen Echo-version contract with Ukraine.

Micael Johansson: Thank you, Johan, and also from my side, welcome to the Q2 report. Let's just dive into the highlights immediately. As you've seen, this was another strong quarter with lots of momentum on the business side. What's been defining the quarter was, of course, the major contracts that we have received on the submarines in Poland and also the Gripen EKO version contract with Ukraine. Huge sort of breakthroughs and successes, of course. Then we are doing extremely well when it comes to improving our way on the operational execution, and that drives gross margin and of course our profitability on the bottom line. Connected to that is all about sort of production ramp-up and increasing our capacity in achieving this. Since we are investing and have done that for quite a few years now in capacity, this is now coming into play.

Speaker #3: Huge sort of breakthroughs and successes, of course. And then we are doing extremely well when it comes to improving our way on the operational execution and that drives gross margin and, of course, our profitability on the bottom line.

Speaker #3: And connected to that is all about sort of production ramp-up and increasing our capacity in achieving this. And since we are investing and have done that for quite a few years now in capacity, this is now coming into play, and we're also recruiting many skillful employees as we speak—roughly in the number of 3,000 net up a year—which adds to our capacity to deliver to our customers.

Micael Johansson: We also recruit many skillful employees as we speak, roughly on a number of 3,000 net up a year, which adds to our capacity to deliver to our customers. That pleases me really well that we are doing well in that area. We will continue to do that, of course, but on top of that, it's not only about capacity, it's also about future capability. Here we also deliver more energy into R&D and new capabilities, which we are showing to our customers as we speak. I think we have increased in H1 now compared to H1 last year. I think we have increased R&D with roughly SEK 700 million, which is a big step. We have a record order backlog, SEK 318 billion, and very strong prospects for the future growth.

Speaker #3: And that pleases me really well that we are doing well in that area. We will continue to do that, of course, but on top of that, it's not only about capacity, it's also about future capability. Here, we also deliver more energy into R&D and new capabilities, which we are showing to our customers as we speak.

Speaker #3: And I think we have increased in the first half-year now compared to the first half-year last year. I think we've increased R&D with roughly 700 million, which is a big step.

Speaker #3: We have a record order backlog, 318 billion, and very strong prospects for the future growth. And I will come back to how that backlog looks like in terms of more short-term deliveries and what sort of ahead of us beyond like three years in terms of deliveries.

Micael Johansson: I will come back to how that backlog looks like in terms of more short-term deliveries and what's sort of ahead of us beyond like three years in terms of deliveries. I need, of course, to spend some minutes on the success stories this quarter. I think was a big breakthrough when it comes to the contract with the submarines for Poland. They have now contracted us for three submarines that will be delivered in the next few years. Of course, this is not only an industrial success, it's also very good for the Baltic Sea, increasing our underwater capability together with Poland from a security perspective of the Baltic Sea. It will also entail industrial collaboration with Poland, and we will have shipyard capabilities on both sides of the Baltic Sea, which makes lots of sense in terms of security and redundancy going forward.

Speaker #3: So I need, of course, to spend some minutes on the success stories this quarter. And I think what's a big breakthrough when it comes to the contract with the submarines for Poland, they have now contracted us for three submarines that will be delivered in the next few years.

Speaker #3: And, of course, this is not only an industrial success, it's also a very good for the Baltic Sea increasing our underwater capability together with Poland from a security perspective of the Baltic Sea.

Speaker #3: But it will also entail industrial collaboration with Poland, and we will have shipyard capabilities on both sides of the Baltic Sea, which makes a lot of sense in terms of security and redundancy going forward.

Speaker #3: So we're really happy about this, and it shows, of course, that this conventional submarine capability is state-of-the-art. It's a big evidence of that, that we're doing something really right in this area.

Micael Johansson: We're really happy about this, and it shows, of course, that this conventional submarine capability is a state-of-the-art capability, and it's a big evidence of that we're doing something really right in this area. Same thing, of course, when it comes to the Gripen fighter, the Gripen E fighter. There's been lots of discussions about Gripen for Ukraine, and President Zelenskyy was here not so long ago in Uppsala discussing this and telling us that now we will go ahead with this, and he talked about up to 150 aircrafts. This is now the first batch actually being contracted by Ukraine, 16 Gripen Es. We haven't booked this yet.

Speaker #3: Same thing, of course, when it comes to the Gripen fighter. The Gripen E fighter—there’s been lots of discussions about Gripen for Ukraine, and President Zelensky was here not so long ago in Uppsala discussing this.

Speaker #3: And telling us that now we will go ahead with this, and he talked about up to 150 aircraft. And this is now the first batch actually being contracted by Ukraine: 16 Gripenees.

Speaker #3: And but we haven't booked this yet. It will be booked in the next quarter. Due to the fact that there were a couple of administrative things connected to receiving money then from EU that Ukraine has to sort of fulfill, and then that will be then that will be coming into effect, that contract shortly.

Micael Johansson: It will be booked in the next Q due to the fact that there were a couple of administrative things connected to receiving money then from EU that Ukraine has to fulfill, and then that will be coming into effect, that contract, shortly. Big success, of course. This is only the first batch, and we will diligently continue to work with the next batch. On top of that, of course, a couple of really big successes on the GlobalEye. Canada selected the GlobalEye earlier in May. We are in negotiation now with Canada. We'll move ahead as quickly as possible to contract that, of course. We're talking about six aircrafts. Then, not long ago, last week, I think, it was the NATO summit and the industrial day. Was a big release from the NATO side that they have now selected a GlobalEye.

Speaker #3: Big success, of course, but this is only the first batch, and we will diligently continue to work with the next batch. On top of that, of course, a couple of really big successes on the global eye.

Speaker #3: And Canada selected the Global Eye earlier in May, and we are in negotiation now with Canada. We'll move ahead as quickly as possible to contract that, of course.

Speaker #3: We're talking about six aircraft. And then not long ago, last week, I think, it was the NATO summit, and the industrial day, and was a big release that from the NATO side that they have now selected the Global Eye.

Speaker #3: We're talking roughly 10 aircraft to NATO, replacing the E3 in Galen Kirschen as a common capability within NATO, supported by nine countries now. And it will be operational, of course, and supported by all the countries when it comes into play in Galen Kirschen.

Micael Johansson: We are talking roughly 10 aircraft to NATO, replacing the E-3 in Geilenkirchen as a common capability within NATO, supported by nine countries now. It will be operational, of course, and supported by all the countries when it comes into play in Geilenkirchen. Big breakthrough, and I think it shows an evidence of how important it is to be in the alliance as a country, and it is also another evidence of fantastic capabilities we, as an industry, have to be able to provide to NATO. To have Sweden and Saab to be delivering this sort of strategic capability to NATO is a really big thing. It has been a fantastic quarter from a big contract, big selection point of view, and it creates a big balance and good balance between our product offering in the market and also the platform offering.

Speaker #3: Big breakthrough, and I think it shows an evidence of how important it is to be in the alliance as a country. And it's also another evidence of what fantastic capabilities we as an industry we have sort of to be able to provide to NATO and to have Sweden and Saab to be delivering this sort of strategic capability to NATO is a really big thing.

Speaker #3: So it's been a fantastic quarter from a big contract, big sort of selection point of view, and it creates a big balance and good balance between our product sort of offering in the market and also the platform offering.

Speaker #3: So this is one of my favorite slides, I must say, this year and this quarter. A few words—not going into much detail—but on why this sort of capability, the GlobalEye, is so attractive.

Micael Johansson: This is one of my favorite slides, I must say, this year and this quarter. A few words, not going into much detail, but on why this sort of capability, the GlobalEye, is so attractive. We have more in pipeline, but I cannot talk about details about that. First of all, it is a capability that can actually cover the air, the sea, and the land simultaneously. Normally, earlier, the airborne and the warning capability was about the air surveillance capability. This is all domains. Of course, it is also incredibly sophisticated when it comes to how it digests all the information from all the sensors. The primary sensor on the fuselage, on the roof of the fuselage is, of course, the one that covers the longest distance, over 650 km. You do not have to be close to any hostilities.

Micael Johansson: This is one of my favorite slides, I must say, this year and this quarter. A few words, not going into much detail, but on why this sort of capability, the GlobalEye, is so attractive. We have more in pipeline, but I cannot talk about details about that. First of all, it is a capability that can actually cover the air, the sea, and the land simultaneously. Normally, earlier, the airborne and the warning capability was about the air surveillance capability. This is all domains. Of course, it is also incredibly sophisticated when it comes to how it digests all the information from all the sensors. The primary sensor on the fuselage, on the roof of the fuselage is, of course, the one that covers the longest distance, over 650km. You do not have to be close to any hostilities.

Speaker #3: And we have more in pipeline, but I can't talk about details about that. But it's first of all, it's a capability that can actually cover the air to sea and the land simultaneously.

Speaker #3: Normally, earlier, the airborne early warning capability was about the air surveillance capability. Now this is all domains. And of course, it is also incredibly sophisticated when it comes to how it digests all the information from all the senses.

Speaker #3: The primary sensor on the fuselage, on the roof of the fuselage, is of course the one that covers sort of the longest distance—over 650 kilometers.

Speaker #3: You don't have to be close to any hostilities, but then there that's around the aircraft. So everything that is looking at you will be detected as well, and gives you a passive quality which is fantastic.

Micael Johansson: There is a passive system as well that surrounds the aircraft, so everything that is looking at you will be detected as well and gives you a passive quality, which is fantastic. All of the sensor information is fused and managed, of course, and digested by AI capability, so the operators in the aircraft and what is linked to the ground or other platform makes sense quickly, and you get a situation awareness picture which you understand in a very skillful way, and you have that quickly. It is in production. We have these aircraft in operations in UAE, and we have it in production, so we can deliver it with short lead times, and it adds to a very critical capability gap, of course.

Speaker #3: All of the sensor information is fused and managed, of course, and digested by AI capability. So the operators in the aircraft, and those linked to the ground or other platforms, can make sense of it quickly.

Speaker #3: And you get situation awareness picture which you understand in a very sort of skillful way, and you have that quickly. And it is in production.

Speaker #3: I mean, we have these aircraft in operations in UAE, and we have it in production so we can deliver it with short lead times.

Speaker #3: And it adds to very critical capability gap, of course. This is a node in a network, so it will you will have access to the information that this platform gathers also from other platforms like ships and fighter aircraft or ground centers or even sort of army sort of type of equipment.

Micael Johansson: This is a node in a network, you will have access to the information that this platform gathers, also from other platforms like ships and fighter aircraft or ground centers or even army type of equipment. It is a really important capability to have strategic and tactical situation awareness. We are really proud about this. Now, back to the numbers. As you have seen, we had an order intake of slightly more than SEK 68 billion this year, of course, dominated by the big contract on the submarines for Poland, also the underlying order intake is very good. The good organic growth of almost 30%, and that shows how we actually deliver and how our capacity investments come into play continuously to increase our delivery pace in all areas, I would say.

Speaker #3: So it is a really important sort of capability to have strategic and tactical situation awareness. We are really proud about this. Now, back to the numbers.

Speaker #3: And as you've seen, we had an order intake of slightly more than 68 billion. This year, of course, dominated by the big contract on the submarines for Poland, but also the underlying order intake is very good.

Speaker #3: The good organic growth of almost 30%. And that shows how we actually deliver, and how our capacity investments come into play continuously to increase our delivery pace in all areas, I would say.

Speaker #3: And then, of course, we increased our profitability in a very good way—driven, of course, by sales, but also by more efficient operations. That improves the gross margin and, by that, also the bottom-line operating margin.

Micael Johansson: Of course, we increase our profitability in a very good way, driven, of course, by sales, but also more efficient operations, and that improves the gross margin and by that also the bottom line operating margin. We had a zero type of cash flow Q, but the H1 is roughly SEK 1 billion plus compared to the H1 last year, which was SEK -1.1 billion. Normally, we do have sort of a H2 that is a lot better than the H1. I just want to underline, we have not taken any payments yet connected to the submarine contracts in Poland. We are confident in delivering a good positive cash flow for this year as well and on track for our guiding on 60% cash conversion over the period.

Speaker #3: We had a zero type of cash flow quarter, but the half year is roughly 1 billion plus compared to the first half year last year, which was minus 1.1 billion.

Speaker #3: And normally we do. Sort of a second half of the year that is a lot better than the half first half year. And I just want to underline, we have not sort of taken any payments yet connected to the submarine contracts in Poland.

Speaker #3: So we are confident in delivering a good, positive cash flow for this year as well, and are on track for our guidance on 60% cash conversion over the period.

Micael Johansson: A few comments on the different business areas from my side. The growth in Saab Aeronautics is connected to good pace and deliveries of Gripen aircraft, but also the tactical software capability development adds a lot of revenue to the Saab Aeronautics side of things. Of course, I need to mention that was a big event in Linköping, Sweden when we rolled out the first two-seat of the Gripen, called Gripen F, because that's also contracted by Brazil, which was a very important milestone, of course. Now these will also come into deliveries as we speak in the next Q. We still have issues when it comes to under absorption, when it comes to getting up and running on the pace of delivering T-7s from our facility in West Lafayette. We're getting there.

Speaker #3: A few comments on the different business areas from my side. The growth in Aeronautics is connected to good, sort of, pace and deliveries of Gripen aircraft.

Speaker #3: But also the tactical software capability development adds a lot of revenue to the aeronautics side of things. And then, of course, I need to mention that was a big event in Linköping, Sweden, when we rolled out the first two-seater of the Grippen called Grippen F, because that's also contracted by Brazil.

Speaker #3: Which was a very important milestone, of course. And now, these will also come into deliveries as we speak in the next quarter. We still have issues when it comes to under-absorption, when it comes to getting up and running on the pace of delivering T7s from our facility in West Lafayette.

Speaker #3: We're getting there. A very important milestone was reached in the US now, where Milestone C—as they call it—was achieved. That's when they actually start contracting Boeing for batches of aircraft.

Micael Johansson: A very important milestone was reached in the US now where the Milestone C, which they call it when they actually start contracting Boeing on batches of aircraft. We have been working our batches for a while with contracts from Boeing to Saab, but now the US Air Force is starting to operate this aircraft, so now the pace needs to increase going forward. It will take a few Qs more and a couple of years, I would say, before we actually get back to good numbers on this side. Eventually, this will be an excellent franchise program over many years. Of course, I talked about the Gripen E to Ukraine, so I don't have to go back into that, even though I would like to talk a lot about that, this success story. Saab Dynamics then. Very good market demand still.

Speaker #3: We have been working our batches for a while. We've contracts from Boeing to Saab, but now the US Air Force is starting to operate these aircraft.

Speaker #3: So now the pace needs to increase going forward. But it will take a few more quarters, and a couple of years, I would say, before we actually get back to good numbers on this side.

Speaker #3: But eventually this will be an excellent franchise program over many years. And then, of course, I talked about the Grippen E to Ukraine, so I don't have to go back into that, even though I would like to talk a lot about that.

Speaker #3: This is a success story. The dynamics, then—very good market demand still. It's a bit lumpy in terms of when the contracts come in. Lots of small contracts, but also a few big ones in the pipeline.

Micael Johansson: It's a bit lumpy in sort of when the contracts come in. Lots of small contracts, but also a few big ones in the pipeline. A few to mention are during this Q is, of course, the NLAW support weapon to France and also another M4 Carl-Gustaf to Lithuania and a vehicle training system to the US Army, which is important contracts and is good underlying pipeline also for Saab Dynamics. Good deliveries, really good growth, 36% Q-over-Q. We also have new products coming into play. We have a new missile for the RBS 70 system. We have a new ammunition type for the Carl-Gustaf that we've launched. We have a camouflage net type of product, a poncho for a soldier that is really taking effect now in the market.

Speaker #3: So a few to mention now during this quarter is, of course, the NLO support weapon to France and also another M4 Carl Gustaf to Lithuania.

Speaker #3: And the training vehicle training system to the US Army, which is an important contract and is a good underlying pipeline also for Dynamics. Good deliveries.

Speaker #3: Really good growth, 36% quarter to quarter. We also have new products coming into play. We have a new missile for the RBS-70 system.

Speaker #3: We have a new ammunition type for the Carl Gustaf that we've launched. And we have a camouflage net type of product, a poncho for a soldier, that has really taken effect now in the market.

Speaker #3: So many good things are happening, and there will be more things that we're investing in in this area going forward now. The Dynamics is doing well.

Micael Johansson: Many good things are happening, and there will be more things that we're investing in this area going forward now. Saab Dynamics is doing well, and also Saab Surveillance extremely well. A strong demand, and I need to point out that we have high deliveries of products from Saab Surveillance, especially on the sensor side. As an example, Giraffe 1X is very high demand in the market, so we are manufacturing this on, you could call it speculation, not only on contract. Compared to last year, we have done a lot more deliveries, 100 systems already in H1, and we are moving to a pace of more than 300 systems a year going forward when we talk about the Giraffe 1X. Also, of course, the GlobalEye has a great pipeline and a big interest in the market.

Speaker #3: And also, Surveillance is performing extremely well, with strong demand. I need to point out that we have high deliveries of products from Surveillance, especially on the sensor side.

Speaker #3: As an example, Giraffe 1X is very high demand in the market, so we are manufacturing this on, you could call it speculation, not only on contract and, I mean, compared to last year, we have done a lot more deliveries, 100 systems already in the first half year, and we are moving to a pace of more than 300 systems a year, going forward when we talk about the Giraffe 1X.

Speaker #3: Also, of course, the global high as a great pipeline and a big interest in the market. And now, as I've talked about, Canada and NATO have selected that, so that negotiations for contracts ongoing.

Micael Johansson: Now, as I've talked about, Canada and NATO have selected that, so that negotiation for contract's ongoing. But also here we work a lot with a counter-UAS portfolio, the counter Unmanned Aerial System portfolio, which is a very important part of our portfolio where we have the components in terms of sensors and command and control, and then we use different type of effectors to take out aerial threats. That is a portfolio I think has a big potential going forward, being an open type of architecture system that we have now launched. Good growth, as you can see, 47% quarter-to-quarter, excellent, and an increasing backlog. The naval side, I must say there's a high demand also in that sort of market.

Speaker #3: But also, here we work a lot with the counter US portfolio, the counter unmanned aerial system portfolio, which is a very important part of our portfolio where you where we have the components in terms of sensors and command and control, and then we use different type of effectors to take out aerial threats.

Speaker #3: And that is a portfolio I think has a big potential going forward, being an open type of architecture system that we have now launched.

Speaker #3: Good growth, as you can see, 47% quarter to quarter. Excellent. And an increasing backlog. The naval side, I must say, there's a high demand also in that sort of market.

Speaker #3: I mean, you know that we didn't get selected together with Babcock on the frigates for Sweden. But you maybe saw yesterday that we were contracted by TKMS to sink group maritime system.

Micael Johansson: You know that we didn't get selected together with Babcock International Group on the frigates for Sweden, but you maybe saw yesterday that we were contracted by TKMS, ThyssenKrupp Marine Systems in Germany to provide everything from composite structures to sensors, to command and control, to fire control systems. For that frigate F128 going forward, four of them, that was almost SEK 9 billion in order intake, and they might need another four going forward. So that was a big breakthrough, of course. There is a demand for that portfolio, I must underline that.

Speaker #3: In Germany, to provide everything from composite structures to sensors, to command and control, to fire control systems. For that frigate F128 going forward—four of them—that was almost €9 billion in order intake.

Speaker #3: And they might need another four going forward. So that was a big breakthrough, of course. There is a demand for that portfolio—I must underline that.

Speaker #3: And now the contract on the submarines for Poland, and in combination with the Swedish contract, of course, means that we are ramping up production capacity both in Karlskrona, the shipyard there, and also taking more facilities into play and ramping up capability in Landskrona.

Micael Johansson: Now the contract on the submarines for Poland, and in combination with the Swedish contract, of course, means that we are ramping up production capacity both in Karlskrona, the shipyard there, and also taking more facilities into play and ramping up capability in Landskrona, the other shipyard, where a number of things will be done on the submarine side as well. We have other contracts also in Australia. We are selected as being the provider of all the surface vessels, and we have received another reasonable contract from them this quarter. Also the Combat Boat is increasing in interest in many countries. So we're building a new facility, increasing our production capacity up north in Docksta, outside Örnsköldsvik, for that capability as well. And we have really good progress on the A26 submarine program in Sweden.

Speaker #3: The other shipyard, where a number of things will be done on the submarine side as well. We have other contracts also ongoing in Australia.

Speaker #3: We are selected as being the provider of all the surface vessels, and we have received another reasonable contract from them this quarter. Also, the combat boat is increasing in interest in many countries.

Speaker #3: So we have we're building a new facility, increasing our production capacity up north in Dockstad. Outside of Hulsvik for that capability as well. And we have really good progress on the A26 submarine program in Sweden.

Micael Johansson: The profitability of the naval side is a little bit weaker than the comparable quarter, but that's due that we took an effect of that we didn't get selected on the Swedish frigate side together with Babcock. We did a write-down and took the whole effect of that during the quarter. Otherwise, the profitability would have increased also in this area. That was once off. Huge backlog now, of course, due to the contract in Poland. Combitech is also doing really well. The sales is a bit flat, but that's mainly through effects of the mix between consultant hours and how we treat other more commitment projects, delivering things timing-wise. That's not a problem at all. They are doing well on their growth side as well. This is more like a timing effect. Of course, the profitability is increasing in a very good way.

Speaker #3: The profitability of the naval side is a little bit weaker than the comparable quarter, but that's due that we took sort of an effect of that we didn't get selected.

Speaker #3: On the Swedish frigate side, together with Babcock, we did the write-down and took the whole effect of that during the quarter. Otherwise, the profitability would have increased also in this area.

Speaker #3: So that was once off. Huge backlog now, of course, due to the contract in Poland. Combat tech is also doing really well. The sales is a bit flat, but that's mainly through effects of the mix between consultant sort of consultants hours and how we treat sort of other more sort of commitment projects, delivering things, timing wise.

Speaker #3: So that's not a problem at all. They are doing well on their growth side as well, so this is more like a timing effect.

Speaker #3: But then, of course, the profitability is increasing in a very good way. And we are growing in our commitments and contracts with, for example, the NATO Communications and Information Agency on the cybersecurity side, but also new contracts with the Swedish Defence Materiel Administration.

Micael Johansson: We are growing in our commitments and contracts with, for example, the NATO Communications and Information Agency on the cybersecurity side, but also new contracts with the Swedish Defence Materiel Administration. Combitech is doing really well, I must say, and that's really good for Saab because it's a resource and competence that we can handle between internal projects within Saab, but also having good contracts externally. On the sustainability side, we are doing a lot to, of course, support our commitments to reducing our emissions. This quarter we actually increased 8% due to lots of business activities, mainly, and many flight test slides, but we're doing well in comparison to the commitment we've done with SBTi. We're on a good track. A couple of examples you can see here what we're doing, more and more automated capabilities introduced.

Speaker #3: So combat tech is doing really well, I must say, and resources and competence that we can handle sort of between internal projects within Saab, but also having good contracts externally.

Speaker #3: On the sustainability side, we are doing a lot to, of course, support our commitments to reducing our emissions this quarter to quarter. We did this quarter, we actually increased 8% due to lots of business activities.

Speaker #3: Mainly, many, many flight test flights, but we're doing well in comparison to the commitment we've made with SBTI. So we're on a good track, and a couple of examples—you can see here what we're doing, with more and more automated capabilities being introduced.

Speaker #3: We have a robot-assisted welding procedure now, which is reducing lots of material and by that also CO2 emissions, of course, same thing on the aeronautics side.

Micael Johansson: We have a robot-assisted welding procedure now, which is reducing lots of material, and by that, also CO2 emissions, of course. Same thing on the aeronautics side. We use 3D printing, and we reduce emissions from that because of material usage and all that. Many small but important parts are being done to improve going forward in the way we do things when it comes to sustainability and environmental aspect of things. We are at the second place in the aerospace and defense sector in the ranking done by Financial Times and Statista's ranking when it comes to European climate leaders. Our ambition is to be a leader in this area going forward, of course, all the time. Last slide from my side, I think this slide is important to reflect upon.

Speaker #3: We use 3D printing, and we reduce emissions from that because of material usage and all that. So, many small but important parts are being done to improve going forward in the way we do things when it comes to sustainability and the environmental aspect of things.

Speaker #3: And we are at second place in the aerospace and defense sector in the ranking done by Financial Times in the statistics ranking. When it comes to European climate leaders, our ambition is to be a leader in this area, going forward.

Speaker #3: And of course, all the time. Last slide from my side. I think this slide is important to reflect upon. This shows how our backlog is divided in terms of how much is going to be delivered in the next two and a half years.

Micael Johansson: This shows how our backlog is divided in terms of how much is going to be delivered in the next two and a half years from now and how much that is increasing quarter-to-quarter. If you look upon Q2 a few years back, as you can see, 60%, roughly, of the backlog is related to things that will be delivered in two and a half years timeframe. If you look back to the last Q2 last year, that has increased 36%. Now, also because of the successes on the platform side, which is a bit longer contracts, of course, if you look upon what will be delivered from year 3 and onwards, that has increased dramatically, of course, from last year Q2 and now is SEK 120 billion and an increase of 132%.

Speaker #3: From now and how much that is increasing. Quarter to quarter, if you look upon a quarter second quarter a few years back. And as you can see, 60% roughly of the backlog is related to things that will be delivered in two and a half years timeframe.

Speaker #3: And if you look back to the second quarter last year, that has increased 36%. But now, also because of the successes on the platform side, which means a bit longer contracts, of course, if you look at what will be delivered from year three and onwards, that has increased dramatically, of course, from last year's second quarter and now is SEK 120 billion.

Speaker #3: And an increase of 132%. So this is just to show you that even though we get large platform contracts, still our short-term deliveries are increasing also, a lot, in the backlog.

Micael Johansson: This is just to show you that even though we get large platform contracts, still our short-term deliveries are increasing also a lot in the backlog, and that is still 60%. We have a very good mix in our backlog, I must say. Without complicating myself too much into numbers, which I think is Anna's responsibility more, I will now hand over to Anna for a more detailed review of our numbers. Here you go, Anna.

Speaker #3: And that's still 60%. So we have a very good mix in our backlog, I must say. So, without sort of complicating myself too much into numbers—which I think is Anna's responsibility more—I will now hand over to Anna for a more detailed review of our numbers.

Speaker #3: Here you go, Anna.

Speaker #1: Thank you, Michael. And good morning, everyone. It's so clear that we have delivered a strong second quarter. We have continued to strengthen our market position and executed on our strategy to both increase our customer deliveries, while we at the same time are increasing our investments in capacity expansion and also future capabilities.

Anna Wijkander: Thank you, Micael, and good morning, everyone. It is so clear that we have delivered a strong Q2. We have continued to strengthen our market position and executed on our strategy to both increase our customer deliveries, while we at the same time are increasing our investments in capacity expansion and also future capabilities. Altogether, our strategy execution is really reflected in our solid financial performance. Before going into the details into the quarter, I would like to take a step back and look into our performance during the last years and how it is in relation to our financial targets. We can see that our sales growth CAGR is now at 24% over this period. We have done this growth with a profitable growth journey, meaning that we have increased the EBIT more.

Speaker #1: So altogether, our strategy execution is really reflected in our solid financial performance. Before going into the details of the quarter, I would like to take a step back and look at our performance during the last years and how it relates to our financial targets.

Speaker #1: And we can see that our sales growth CAGR is now at 24% over this period. And we have achieved this growth with a profitable growth journey, meaning that we have increased EBIT more.

Speaker #1: It's at 34% now, supported by expanded gross margin as well as operating leverage. Our cash conversion reached 53% after this quarter. It was a little bit lower than where we were after the first quarter.

Anna Wijkander: It is at 34% now, supported by expanded gross margin as well as operating leverage. Our cash conversion reached 53% after this quarter. It was a little bit lower than we were after the Q1, but a huge improvement compared to where we were last year at the same time. Also, as Micael said, we normally have a more stronger, positive cash flow profile on the H2 of the year. Altogether, we remain confident that we are well progressing towards our medium-term targets in cash conversion as well. Now let's look at the numbers more in detail and focusing on gross margin and operating income. We delivered a record of gross margin for the single quarter.

Speaker #1: But a huge improvement compared to where we were last year at the same time. Also, as Michael said, we normally have a stronger positive cash flow profile in the second half of the year.

Speaker #1: So altogether, we remain confident that we are well progressing towards our medium-term targets in cash conversion as well. Now, let's look at the numbers more in detail and focusing on gross margin and operating income.

Speaker #1: We delivered a record gross margin for the single quarter. Importantly, is that we expanded the gross margin by more than 1 percentage point compared to last year.

Anna Wijkander: Importantly is that we expanded the gross margin by more than 1 percentage point compared to last year, and that is very much driven by Saab Surveillance and Saab Dynamics, which increased their share of the total sales revenues in the quarter. In addition, we significantly increased the R&D, which is according to our strategy, and we are at the same time leveraging and scaling on administration and marketing and sales costs. All in all, we are improving our EBIT margin to 11%, an increase of 41% in the quarter. Turning to our business areas, let's start with Saab Dynamics, where we have the ramping up is done successfully, and we have had several deliveries in the quarter, which has contributed to the EBIT, which is an EBIT that is at record numbers this quarter. The sales and EBIT growth in Saab Dynamics is broad across the business units.

Speaker #1: And that is very much driven by Surveillance and Dynamics, which increased their share of the total sales revenues in the quarter. In addition, we significantly increased the R&D, which is according to our strategy.

Speaker #1: At the same time, we are leveraging and scaling our administration, marketing, and sales costs. Overall, we are improving our EBIT margin to 11%, which is an increase of 41% in the quarter.

Speaker #1: Turning to our business areas and let's start with dynamics, where we have the ramping up is done successfully and we have had several delivers in the quarter, which has contributed to the EBIT, which is an EBIT that is at record numbers this quarter.

Speaker #1: The sales and EBIT growth in Dynamics is broad across the business units, so very good performance from Dynamics. The same goes for Surveillance, where we had EBIT growth of 55% in the quarter.

Anna Wijkander: Very good performance from Saab Dynamics. The same goes for Saab Surveillance, where we have the EBIT growth of 55% in the quarter. Here it is very much the sensor systems business that is supporting both the growth and the EBIT margin expansion. Like Saab Dynamics, Saab Surveillance is ramping up, and that is something that we see in the G1X production, which is ramping up and contributing to several deliveries and the EBIT margin increase in the quarter. In Saab Aeronautics, it is the Gripen business that is expanding the production capacity with delivery levels that are increasing. As we have mentioned before, we still have negative contribution from the T-7 program, which is something that we will have for some more time until we have ramped up and have scale in that production facility. Finally, our business area Saab Naval.

Speaker #1: Here it is very much the sense of systems business that is supporting both the growth and the EBIT margin expansion. And like dynamics, surveillance is ramping up and that is something that we see in the G1X production which is ramping up and contributing to several deliveries and the EBIT margin increase in the quarter.

Speaker #1: In aeronautics, it's the Gripen business that is expanding the production capacity, with delivery levels that are increasing. And as we have mentioned before, we still have negative contribution from the T7 program, which is something that we will have for some more time until we have ramped up and have scale in that production facility.

Speaker #1: Finally, our business area naval. The highlight for naval this quarter is, of course, this huge contract for this three submarines to Poland, large order of 47 billion Swedish krona that will contribute to sales and revenues for a long time and several years ahead.

Anna Wijkander: The highlight for Saab Naval this quarter is, of course, this huge contract for the three submarines to Poland. A large order of SEK 47 billion that will contribute to sales and revenues for a long time and several years ahead. On the other hand, we were not selected for the Swedish frigate program. As Micael said, we have recognized costs that was related to that program that we have taken now in this quarter, and that is what is impacting the EBIT and EBIT margin negatively in business area Saab Naval this year. All in all, we have delivered strong EBIT across the group. Importantly to mention is that we have achieved that while we at the same time are making significant investments for R&D in future growth, innovation, and technology leadership. On a rolling 12-month basis, we have spent SEK 4.4 billion in internally funded R&D.

Speaker #1: On the other hand, we were not selected to the for the Swedish frigate program. And as Michael said, we have recognized costs for that that was related to that program that we have taken now in this quarter.

Speaker #1: And that is what's impacting the EBIT and EBIT margin negatively in Business Area Naval this year. So, all in all, we have delivered strong EBIT across the group.

Speaker #1: Importantly to mention is that we have achieved that while at the same time making significant investments in R&D for future growth, innovation, and technology leadership.

Speaker #1: On a rolling 12-month basis, we have spent 4.4 billion Swedish krona in internally funded R&D. This is more than doubled since the three years ago.

Anna Wijkander: It is more than doubled since three years ago. Our R&D is focused on key technology areas, including autonomy, next-generation sensor capabilities, advanced weapon systems, and AI-enabled command and control systems, all of which are supporting the future growth. These efforts are generating fast results, some examples during the quarter are, for instance, that we did a first test flight for an unmanned airborne early warning system together with General Atomics. We also performed a successful remote torpedo firing from an unmanned and remotely controlled Combat Boat 90. These are just some examples on new capabilities that will reinforce our ability for future opportunities, but it is also going to strengthen our existing platform. Now, let us take a look at cash flow. Looking at the H1, we have a positive cash flow of SEK 1 billion, which is a significant improvement from last year.

Speaker #1: Our R&D is focused on key technology areas. Including autonomy, next generation sensor capabilities, advanced weapon systems, and AI-enabled command and control systems. All of which are supporting the future growth.

Speaker #1: These efforts are generating faster results and some examples during the quarter are, for instance, that we did a first test flight for an unmanned airborne early warning airborne early warning system to get there with general atomics.

Speaker #1: We also performed a successful remote torpedo firing from an unmanned and remote-controlled Combat Boat 90. These are just some examples of new capabilities that will reinforce our ability to prepare for future opportunities, while also strengthening our existing platform.

Speaker #1: Now, let's take a look at cash flow. Looking at the first half-year, we have a positive cash flow of SEK 1 billion, which is a significant improvement from last year.

Speaker #1: And that is coming from while we, at the same time, are increasing our investment in capacity that is increased by around SEK 1 billion compared to last year.

Anna Wijkander: That is coming while we, at the same time, are increasing our investment in capacity. That is increased by around SEK 1 billion compared to last year. The higher cash outflow from financial items and taxes is mainly related to the higher taxes that were paid in Q1. With support from the recent major wins, we see good prospects for good cash flow for the rest of the year. As Micael also mentioned, we have not yet received the advance payment for the Poland contract, so we remain confident to deliver continued positive cash flow during the year. Notably as well is that we are improving our return on capital employed, and that is driven both by higher profitability and also higher capital turnover. Our balance sheet is strong with a net liquidity of SEK 2.5 billion.

Speaker #1: The higher cash outflow from financial items and taxes is mainly related to the higher taxes that were paid in Q1. Supported by the recent major wins, we see good prospects for strong cash flow for the rest of the year.

Speaker #1: And as Michael also mentioned, we have not yet received the advanced payment for the Poland contract. So we remain confident to deliver continue positive cash flow during the year.

Speaker #1: Notably as well, we are improving our return on capital employed, and that is driven both by higher profitability and also higher capital turnover.

Speaker #1: Our balance sheet is strong, with a net liquidity of SEK 2.5 billion. It's a decrease since year end, and that is primarily from tax and the dividend payments done.

Anna Wijkander: It's a decrease since year-end. That is primarily from tax and the dividend payments done. We have a cash and liquid investment of approximately 17 billion SEK, and in addition to that, an unutilized revolving credit. Worth mentioning is that S&P has made their annual review in June, and they reconfirm our investment grade rating of triple B plus. Overall, this provides a strong financial position and a flexibility going forward. All in all, we remain confident in our medium-term targets. They are supported by strong market demand and increasing defense spending. Our portfolio is well aligned with customer requirements, and we continue to invest heavily in production capability, technology, and talents, both to support future growth and to make sure that we can deliver on our commitments. These investments are increasingly translating into higher delivery volumes and improved scalability across the company.

Speaker #1: We have cash and liquid investments of approximately SEK 17 billion. In addition to that, we have an unutilized revolving credit. Also worth mentioning is that S&P conducted their annual review in June.

Speaker #1: And they reconfirm our investment grade rating of BBB+. So overall, this provides a strong financial position and flexibility going forward. All in all, we remain confident in our medium-term targets.

Speaker #1: They are supported by strong market demand and increasing defense spending. Our portfolio is also well aligned with customer requirements, and we continue to invest heavily in production capability.

Speaker #1: Technology and talents both to support future growth and to make sure that we can deliver on our commitments. These investments are increasingly translating into higher delivery volumes and improved scalability across the company.

Speaker #1: So, against this backdrop, we are well positioned to reach our medium-term targets of organic sales growth in this period, '23 to '27, of around 22% CAGR.

Anna Wijkander: Against this backdrop, we are well positioned to reach our medium-term targets of organic sales growth in this period 2023 to 2027 of around 22% CAGR. We have an EBIT growth higher than the sales growth and a cash conversion above 60%. We see that the combination of the record backlog, the strong demand, the capacity expansion, and the disciplined execution is a solid foundation for achieving these targets. With that, I hand over to Johan and the Q&A. Thank you.

Speaker #1: We have an EBIT growth higher than the sales growth, and a cash conversion above 60%. So, we see that the combination of the record backlog, the strong demand, the capacity expansion, the disciplined execution, and the solid foundation is a solid foundation for achieving these targets.

Speaker #1: So, with that, I hand over to Johan for the Q&A. Thank you.

Speaker #2: Thank you, Michael and Anna. Let's move over to the Q&A session. I think we have a couple of questions over the telephone that we're going to start with, and I also want to remind you that you can post your questions over the web interface as well, if you would like.

Johan Andersson: Thank you, Micael and Anna. Let's move over then to the Q&A session. I think we have a couple of questions over the telephone that we're going to start with, and also remind you that you can post your questions over the web interface as well, if you would like that. Please, operator, do we have any questions over the telephone conference?

Speaker #2: So please operator, do we have any questions over the telephone conference?

Speaker #1: Yes. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the telephone.

Operator 2: Yes. We will now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on the telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star 2. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star 1 at this time. The first question comes from the line of Daniel Djurberg from Handelsbanken. Please go ahead.

Operator: Yes. We will now begin the question and answer session. Anyone who wishes to ask a question may press star one on the telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone who has a question may press star one at this time. The first question comes from the line of Daniel Djurberg from Handelsbanken. Please go ahead.

Speaker #1: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #1: Questioners on the phone are requested to disable loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time.

Speaker #1: The first question comes from the line of Daniel Dubeck. I'm sorry. From Handelsbanken. Please go ahead.

Speaker #2: Thank you, operator, and good morning, Johan, Michael, and Anna. Congratulations on solid operations in Q2 and all the new bagged orders. I have a couple of questions, if I may.

Daniel Djurberg: Thank you, operator, good morning, Johan, Micael, Anna, and congratulations on solid operations Q2 and all new bagged orders. I have a couple of questions, if I may. Can you hear me?

Speaker #2: Can you hear me?

Speaker #3: Yeah, absolutely. Go ahead.

Micael Johansson: Yeah, absolutely. Go on.

Daniel Djurberg: Yeah. Super. Thanks. Yes. First I would like to ask you a little bit on the group gross margin, of course, is strong given the mix. I was thinking if we would have more of an unchanged mix, and also how the underlying gross margin would have been in that scenario. Also if you can comment on impact on component inflation so far and what to come. Thank you.

Speaker #2: Yeah, super, thanks. Yes, first, I would like to ask you a little bit about the group cross model that was strong, given the mix.

Speaker #2: And but I was thinking if we will have more of an unchanged mix and also have the underlying gross model would have been in that scenario and also if you can comment on impact on component inflation so far and what to come ahead.

Speaker #2: Thank you.

Speaker #3: Do you want to talk about the gross margin on group level?

Micael Johansson: Do you want to talk about the gross margin on group level?

Anna Wijkander: Yes, I can do that. As you can see, the gross margin has improved, and this quarter it was really driven by Saab Dynamics and Saab Surveillance. The gross margin is increasing while we are scaling the company, but of course, it is impacted by the mix from the different business areas. As we know, the contracts that we are receiving now for the platform contracts are going to be delivered for over long-term periods. We still see that the gross margin is expanding.

Speaker #1: Yes, I can do that. As we can see, the gross margin has improved, and this quarter it was really driven by Dynamics and Surveillance.

Speaker #1: The gross margin is increasing when we're scaling the company. But of course, it's impacted by the mix from the different business areas. As we know, the contracts that we are receiving now for the platform contracts are going to be delivered over a long-term period.

Speaker #1: So we still see that the gross margin is expanding.

Micael Johansson: I must say it's a bit difficult to predict exactly how the mix will look like, because even though the big platform contracts are a bit more stretched when it comes to deliveries over time, those operational business areas are a bit different when it comes to the gross margins, but still delivering the bottom line margin needed. Exactly how the mix of products, which has higher gross margins than maybe the platform margins will look like going forward, it's hard to say, actually.

Speaker #3: I must say it's a bit difficult to predict exactly how the mix will look like because even though the big platform contracts are a bit more stretched when it comes to deliveries over time, they also those operational business areas are a bit different when it comes to the gross margins, but still delivering sort of the bottom line margin needed.

Speaker #3: So, exactly how the mix of products—which has higher gross margins than maybe the platform margins—will look like going forward is hard to say, actually.

Speaker #3: It depends on the slide I showed with how much of the backlog is actually related to short-term deliveries and the longer-term deliveries.

Daniel Djurberg: Yeah.

Micael Johansson: It depends on the slide I show with how much of the backlog is actually related to short-term deliveries and the longer-term deliveries. All in all, bottom line margin will be good in the mix.

Speaker #3: But all in all, I mean, bottom line margin will be good in the in the mix related to components, I guess. And I mean, we we're not a huge buyer of of components because but but of course, we we pay attention to the fact that we don't have sort of limitations on access to components yet.

Daniel Djurberg: That's perfect.

Micael Johansson: Yeah. Related to components, I guess. We're not a huge buyer of components. Of course, we pay attention to the fact that we don't have limitations on access to components yet, but the prices are increasing due to data centers and GPUs and what have you, of course. We're not a huge volume buyer, so it has not a big effect, but some of course, but we try to mitigate that through other means. We're not suffering like maybe the automotive industry and maybe the telecom industry in the way that they are doing yet, at least.

Speaker #3: But the prices are increasing, due to data centers and GPUs and what have you. Of course, but we're not a huge volume buyer.

Speaker #3: So it has not a big, big effect, but some, of course. But we try to mitigate that through other means. So we're not sort of suffering like maybe the automotive industry and maybe the telecom industry, in the way that they are doing.

Speaker #3: Yet at least.

Speaker #2: Thank you. And may I have one follow up? And that would be if I missed something on you talk about advanced payments for the Poland contracts.

Daniel Djurberg: Thank you. May I have one follow-up, and that would be if I missed something on you talked about advance payments for the Poland contracts. Have you been more vocal on which portions of these will come and when and how much or anything like that? Or just a mild sketch.

Speaker #2: And have you been more vocal on on which portions these will come and when and how much or anything like that or just a sort of specifically talking

Micael Johansson: We're not specifically talking about the percentage of the contract or anything like that, but it's a good advance payment and a payment schedule that supports our quick ramp-up of shipyard capacity and all that. We're not going to act like a bank related to that contract, that much I can say.

Speaker #3: about the percentage of the contractor or anything like that. But it's a good advanced payment and a payment schedule that supports our quick quick ramp up of of shipyard capacity and all that.

Speaker #3: So we're not going to act like a bank related to that contract. That much I can say.

Speaker #2: That's really good. Thank you so much, and have a great summer and good luck in Q3.

Daniel Djurberg: That's really good.

Micael Johansson: Yeah.

Daniel Djurberg: Thank you so much, and have a great summer, and good luck to you three.

Speaker #3: Thanks very much.

Micael Johansson: Thanks very much.

Johan Andersson: Thank you very much, Daniel. Operator, do we have a next question?

Speaker #2: Daniel. And operator, do we have a next question?

Speaker #1: The next question comes from the line of Ian Douglas Pennant from UBS. Please go ahead.

Operator 2: The next question comes from the line of Ian Douglas-Pennant from UBS. Please go ahead.

Operator: The next question comes from the line of Ian Douglas-Pennant from UBS. Please go ahead.

Speaker #4: Thanks very much for taking my question. Yeah, it's Ian Douglas Pennant, UBS. So the first is on the naval write-down. Could you give some kind of indication on the size of the write-down that you took, and what exactly was written down?

Ian Douglas-Pennant: Thanks very much for taking my question. Yeah, it is Ian Douglas-Pennant at UBS. The first is on the naval writedown. Could you give some kind of indication on the size of the writedown that you took and what exactly was written down? Is it capitalized R&D or inventory, or how should we think about that? Thank you. The second on Surveillance, you mentioned that mixed effect was a supporter of the margin expansion there. I wonder if you can help us size the relative drivers of margin expansion. Really what I am trying to get at is how important is the underlying efforts that you are making to improve margins there? Thirdly, can you give us just a reminder on where you are in terms of production capacity in Dynamics, the plans to expand those, and the kind of timing of when the new capacity comes on?

Speaker #4: Is it capitalized R&D or inventory or how should we think about that? Thank you. The second on surveillance, you mentioned that mixed effects was a supporter of the margin expansion there.

Speaker #4: I wonder if you can help us size the relative drivers of margin expansion. Really, what I'm trying to get at is: how important are the underlying efforts that you're making to improve margins there?

Speaker #4: And thirdly, can you give us just a reminder on where you are in terms of production capacity in Dynamics, the plans to expand those, and the kind of timing of when the new capacity comes on?

Speaker #4: Thank you so much.

Ian Douglas-Pennant: Thank you so much.

Speaker #3: Well, on the naval side, I mean, obviously that was a pre-start to actually concepting and making sure that we can manage the time schedule. As you heard, a lot about the selection was about the schedule.

Micael Johansson: Well, on the naval side, obviously that was a pre-start to actually concepting and making sure that we can manage the time schedule. As we heard a lot about the selection was about the schedule, we were confident in managing the schedule for delivery. That led to that we did have to do a pre-start on the project. It was roughly SEK 200 million that we took on naval side. It is as easy as that. There are other good things happening, mitigating things going forward. I am not worried about that. That was, of course, a bit of a disappointment. The underlying margin on-

Speaker #3: And we were confident in in managing the schedule for delivery, but that that sort of led to that we did have to do a pre-start on the project.

Speaker #3: And it was roughly 200 million. That we took. On on naval side. So this is easiest that. But but there are other good things happening mitigating things going forward.

Speaker #3: So I’m not worried about that. But that was, of course, a bit of a disappointment. The underlying margin on—.

Speaker #2: Surveillance.

Johan Andersson: Surveillance

Speaker #1: Surveillance.

Speaker #3: Surveillance.

Micael Johansson: surveillance.

Micael Johansson: Surveillance.

Speaker #2: And the mix how the.

Johan Andersson: The mix of the-

Micael Johansson: Well, I think Surveillance, as you're saying, as you're alluding to, the underlying margin on Surveillance is a combination of the big platforms and also of course the scale of delivering sensor capability. I wouldn't say that margin should be good all in all in combination, because I won't go so far to say that no, the margin on the big platforms like GlobalEye would be limited. On the contrary, really good margins. Of course, on the product side, if you really get to delivering 300 radars a year, you will get the huge scale effect. When that demand continues, that would add a little bit more margin to it than the GlobalEyes. Surveillance should be showing numbers that we are looking at right now, and also going forward. That's what I can say on that. The third one was?

Speaker #3: Oh, well, I think surveillance, as you're saying, as you're alluding to, I mean, the underlying margin on surveillance is a combination of the big platforms and and also of course the the the the scale of delivering sensor capability.

Speaker #3: And and but I wouldn't say that margin should be should be good all in all in combination because I I wouldn't go I won't go so far to say that no, the margin on the big platforms like Global Eye would be sort of limited on the contrary, really good margins.

Speaker #3: But of course, on the product side, if you really get to delivering 300 radars a year, you would get the huge scale effect. So, when that demand continues, that would add a little bit more margin to it than the GlobalEyes.

Speaker #3: But surveillance should be sort of showing numbers that we are looking at right now and also going forward. That's what I can say on that.

Speaker #3: And the third one was.

Speaker #2: The third question was a little bit about, in dynamics, where are we in terms of the ramp? Are we...

Johan Andersson: The third question was a little bit about in Dynamics, where are we in terms of the ramp here?

Speaker #3: No, no, of course. No, I think we have now a completely automated weapons factory—the weapon itself, sort of the tube, if I will call it that—up and running in Linköping.

Micael Johansson: No, I think we have now a completely automated weapons factory. The weapon itself, the tube, if I will call it that, up and running in Linköping. We're automating the ammunition manufacturing in Karlskoga. That starts coming into play as well. We have put in robotics in the existing line, but we're doing a parallel investment to do it fully automatic, if I put it that way. We will inaugurate the manufacturing facility in Grayling, Michigan, in October timeframe, and early next year we will do the same in India for that manufacturing facility also. A number of capacity increases are happening as we speak and more and more every quarter comes into play. It's going really well, I must say.

Speaker #3: We're automating the ammunition manufacturing in Kaskoga. That starts coming into play as well. We have put in robotics in the existing line, but we're doing a parallel investment to do it fully automatic, if I put it that way.

Speaker #3: We will inaugurate the facility, the manufacturing facility in Grayling, Michigan, in the October time frame. And early next year, we will do the same in India for that manufacturing facility.

Speaker #3: Also, so a number of capacity increases are happening as we speak. And more and more every quarter comes into play. So it's going really well, I must say.

Speaker #2: Excellent. And let's let's take a question from the from the web interface in between. And it's around capacity as well. For Global Eye, now when you have started to get so many contracts, how do you view the the the capacity of what are we ramping up to and how do you see that?

Johan Andersson: Excellent. Let's take a question from the web interface in between, it's around the capacity as well. For GlobalEye, now when you have started to get so many contracts, how do you view the capacity? What are we ramping up to, and how do you see that? It comes from OxCap, Rory Smith.

Speaker #2: It comes from Oxcap, Rory Smith.

Speaker #3: Well, I mean, if you had asked me like one or two quarters ago, I would have probably said that we need to ramp up to four a year.

Micael Johansson: If you had asked me one or two quarters ago, I would have probably said that we need to ramp up to 4 a year. Now I think we have to actually take it a bit further to 6 per year. All the things we're doing right now in terms of increasing our capacity in Linköping to do the conversion of a business jet to a missionized GlobalEye is going really well. We will also create a hub in Canada since we are selected in Canada, and maybe at another location in Europe going forward to support the NATO and the Canada thing. There's maybe also more in pipeline. I would rather say that we go from 2 a year now and should aim for 6 a year in the 2030 timeframe.

Speaker #3: Now, I think we have to actually take it a bit further to six per year. And all the things we're doing right now in terms of increasing our capacity in Linköping to do the conversion of a business jet to a missionized GlobalEye—it's going really well.

Speaker #3: But we will also create a hub in Canada, since we are selected in Canada. And maybe, maybe at another location in Europe going forward to support sort of the NATO and the Canada thing.

Speaker #3: But there there's maybe also more in pipeline. So I I would rather say that we go from two a year now and should aim for like six a year in the 2030 time frame.

Speaker #2: Good. Another question over the web interface. When you're starting to get more international orders now for the larger platforms and you're sort of adding more orders and ramping up the delivery here, are those international orders typically coming with a high margin, or how should we view that?

Johan Andersson: Good. Another question over the web interface. When you're starting to get more international orders now for the larger platforms and you are also adding more orders and you're ramping up the delivery. Are those international orders typically coming with a high margin, or how should we view that?

Speaker #3: It depends on the country and the contract, I would say. Of course, we always try to have good margins in our contracts, and that goes for every contract.

Micael Johansson: Depends on the country and the contract, I would say. Of course, we always try to have good margins in our contracts, and that goes for every contract. We have a few legacy contracts that are not fantastic because of events that happened over time and also maybe how we contracted them legacy-wise, but we're doing a lot better when it comes to each and every contract, I would say now, which also adds, of course, to our development when it comes to profitability and our ability to invest in R&D.

Speaker #3: We have a few legacy contracts that are not, sort of, fantastic because of events that happened over time, and also maybe how we contracted them legacy-wise.

Speaker #3: But we're doing a lot better when it comes to each and every contract. I would say now we should also, of course, add to our development when it comes to profitability and our ability to invest in R&D.

Speaker #1: Maybe Mark can add just to that as well. I mean, also some of the international contracts come with an open book contract policy, which is normal normally a bit lower margins.

Anna Wijkander: Maybe one can add just to that as well, also some of the international contracts come with an open book contract policy, which is normally a bit lower margin.

Speaker #1: So, as you say, it's a mix and depends on the type of contract.

Micael Johansson: Yeah.

Anna Wijkander: It's, as you say, it's a mix and depending on which kind of contract.

Speaker #3: If you are sort of selected as a supplier for a certain capability in a country, that's a framework contract that has an open book, as Anna is saying.

Micael Johansson: If you are selected-

Micael Johansson: If you are selected.

Anna Wijkander: Yeah

Anna Wijkander: Yeah.

Micael Johansson: as a supplier for a certain capability in a country, that's a framework contract that has an open book as Anna is saying. Then, of course, that puts a bit more pressure when it's not in competition anymore. It's a complete open book. The mix between those contracts and also how many we win in competition will also create the margin development.

Micael Johansson: As a supplier for a certain capability in a country, that's a framework contract that has an open book as Anna is saying. Then, of course, that puts a bit more pressure when it's not in competition anymore. It's a complete open book. The mix between those contracts and also how many we win in competition will also create the margin development.

Speaker #3: And then of course that puts a bit more pressure when it's not in in competition anymore. It's a complete open book. So that the mix between those contracts and also the how many we win in competition will also sort of create sort of the margin development.

Speaker #2: Good. Okay. Please, operator, do we have any other questions on the telephone conference?

Johan Andersson: Good. Okay. Please, Operator, do we have any other questions on the telephone conference?

Speaker #1: We now have a question from Mikael Lassin of DNB Carnegie. Please go ahead.

Operator 2: We now have a question from the line of Mikael Laséen from DNB Carnegie. Please go ahead.

Operator: We now have a question from the line of Mikael Laséen from DNB Carnegie. Please go ahead.

Speaker #2: Yeah, thank you. I have a question on the guidance and midterm targets. This quarter, you grew 30% organically. The order intake reached SEK 68 billion, and you also got several new orders after the quarter end.

Mikael Laséen: Yeah. Thank you. I have a question on the guidance medium-term targets. This quarter, you grew 30% organically, and the order intake reached SEK 68 billion, and you also got several new orders after the quarter end. You left the medium-term sales guidance unchanged. I am just wondering if this is a reflection of execution capacity, delivery timing, or just conservatism.

Speaker #2: But you left the medium-term sales guidance unchanged. I'm just wondering if this is a reflection of execution capacity, delivery timing, or just conservatism?

Speaker #3: I would say that, I mean, you're right. I mean, we have delivered 26-plus percent organically during the first half-year this year also.

Micael Johansson: You are right. We have delivered 26%+ organically during the H1 this year also, so we are moving in the right direction. There are still six quarters to go in our 2023 to 2027 timeframe guidance period. We have said that six quarters is a lot of deliveries and things that must happen and really get in place. I still stick with my comments that, yes, we are on the right track, and we will come back towards the year-end on how we will look at the future guidance thing. I do not want to jump into a new guidance discussion now. I think it is fair to give it another two quarters before we look upon where we are going. Of course, it is going to be continuous growth. We are confident in the guidance we have today. That is where we are.

Speaker #3: So, we're moving in the right direction. But there are still six quarters to go in our 2023 to 2027 time frame guidance period.

Speaker #3: And we've said that, we've said that six quarters is a lot of deliveries and things that must happen, and really get sort of in place.

Speaker #3: So I I still stick with my comments that yes, we're on the right track and we will come back sort of towards the year end on on how we will look at the future guidance thing.

Speaker #3: I want to sort of just I don't want to jump into a new guidance sort of discussion now. I think it's fair to sort of give it another two quarters before we before we look upon where we're going.

Speaker #3: But of course, it's going to be a continuous growth. I mean, we're confident in the guidance we have today, but that's where we are.

Speaker #2: Yeah. Okay, fair enough. And when it comes to bottlenecks or potential bottlenecks, this quarter doesn't suggest any issues, but if you look as of today, what is the single biggest sort of bottleneck to grow even faster?

Mikael Laséen: Yeah. Okay, fair enough. When it comes to bottlenecks or potential bottlenecks, this quarter does not suggest any issues. If you look across Saab today, what is the single biggest bottleneck to grow even faster? Production facilities, skilled engineers, suppliers, customer acceptance, or something else?

Speaker #2: Production facilities, skilled engineers, suppliers, customer acceptance, or something else?

Speaker #3: The biggest effort—I mean, we put a lot of effort into increasing our own capacity, spending roughly SEK 10 billion a year on it.

Micael Johansson: We put a lot of effort into increasing our own capacity, spending like SEK 10 billion a year on it, roughly. That is important, but that is not enough. We have to work with our supply chain to make sure that that becomes more resilient. It's everything from putting a little bit more in stock, like titanium and aluminum alloys and special steel and some components, and also looking at maybe trying to certify an alternative supplier, of course, to have redundancy, but also to insource a few things to do it ourselves. All of these things are in play, and that's the bottleneck to manage your supply chain. I would say, this is something we have to continue to work with. It will be a never-ending story, I think, but that's where I see we put most efforts today.

Speaker #3: That is important, but that is not enough. We have to work with our supply chain to make sure that that becomes more resilient.

Speaker #3: It's everything from putting a little bit more in stock, like titanium and aluminum alloys and special steel, and some components, and also looking at maybe trying to certify an alternative supplier.

Speaker #3: Of course, to have redundancy, but also to insource a few things and do them ourselves. So, all of these things are in play.

Speaker #3: And that's sort of the bottleneck—the management of your supply chain, I would say. This is something we have to continue to work with.

Speaker #3: It will be a never-ending story, I think. But that's where I see we put most efforts today. We've been doing these things really well.

Micael Johansson: We've been doing these things really well, but we have to continue being on our toes working that. If I need to point at a bottleneck, it's probably more in the supply chain than anywhere else. Not in the recruitment. We are attracting lots of skillful people, fantastic employees on a rate of 3,000 a year net up, roughly. That's not the real limitation, really. Rather, the bottleneck is connected to supply chain.

Speaker #3: But we have to continue being on our toes, working at that. So, if I need to point at the bottleneck, it's probably more in the supply chain than anywhere else.

Speaker #3: Not in the recruitment. We are attracting lots of skillful people, fantastic employees, at a rate of 3,000 a year net, roughly. So that's not the real limitation, really.

Speaker #3: But rather, the bottlenecks are connected to the supply chain.

Speaker #2: Okay. Yeah. And another thing regarding capacity and new large orders—can you say something about how you plan to, I mean, deliver the big Polish contract? If that means higher investments that we should maybe build into our expectations, or something else—how is that project expected to develop and start?

Mikael Laséen: Okay. Just another thing regarding capacity and the new large orders. Can you say something about how you plan to deliver the big Polish contract, if that means higher investments that we should maybe build into our expectations or something else, how that project is expected to develop and start?

Speaker #3: No, of course it will take some sort of investments, and industrial collaboration setups, and investing a few things in a shipyard in Poland, which we will build up.

Micael Johansson: Of course, it will take some sort of investments and industrial collaboration setups and investing a few things in a shipyard in Poland, which we will build up. We have covered that in our contracts. It's not a thing that we put the side of the contracts. No. It's not a thing like that. I'm confident that by the contracts we have on the naval side now can cover that sort of investment we need to do.

Speaker #3: But we we have covered that in our contracts. It's not sort of a thing that we put aside of the contracts. No. So it's not sort of a thing like that.

Speaker #3: So, I'm confident that we, by the contracts we have on the naval side now, can cover that sort of investment we need to do.

Mikael Laséen: Good. Thanks a lot.

Speaker #3: Thank you very much.

Johan Andersson: Thank you very much. Operator, do we have another question on the telephone conference?

Speaker #2: Operator, do we have another question over the telephone conference?

Speaker #1: The next question comes from the line of Jakob Martin from SEB. Please go ahead.

Operator 2: The next question comes from the line of Jakob Markin from SEB. Please go ahead.

Operator: The next question comes from the line of Jakob Markin from SEB. Please go ahead.

Speaker #2: Perfect. Thank you for taking my question. Just follow up on the globalized. There you touch upon on the six aircraft a year. I mean, firstly, what kind of investment do you think you need to to to reach that number?

Jakob Markin: Perfect. Thank you for taking my question. Just a follow-up on the GlobalEye that you touched upon on the 6 across a year. Firstly, what kind of investment do you think you need to reach that number? Secondly, we know the France order, and we expect NATO and Canada, of course. If you see beyond that, what's the reasonable sort of order from a normal-sized country? How many orders or countries are you expecting orders from if having a production capacity at 6 planes a year?

Jakob Marken: Perfect. Thank you for taking my question. Just a follow-up on the GlobalEye that you touched upon on the 6 across a year. Firstly, what kind of investment do you think you need to reach that number? Secondly, we know the France order, and we expect NATO and Canada, of course. If you see beyond that, what's the reasonable sort of order from a normal-sized country? How many orders or countries are you expecting orders from if having a production capacity at 6 planes a year?

Speaker #2: And secondly, I mean, we know the France order, and we expect, you know, NATO and Canada, of course. But, I mean, if you see beyond that, what's the reasonable, you know, sort of order from a new normal-sized country?

Speaker #2: I mean, how many orders or countries are you expecting orders from if, you know, having a production capacity at six planes a year?

Speaker #3: Well, I think it's hard to sort of break this down into really specific things. But, I mean, our assessment of the potential pipeline, including NATO and Canada, of course, and a couple of others that we have in the pipeline, is substantial.

Micael Johansson: Well, I think it's hard to sort of break this down into really specific things. Our assessment of the potential pipeline, including NATO and Canada, of course, and a couple of others that we have in the pipeline, is substantial. If we want to keep our lead times and the deliveries needed in the 2030 timeframe and onwards, I think we need to be somewhere between four and six. I should rather build for six because it's not that sort of complicated if you need to adjust it a bit downwards. It's not huge investments in terms of infrastructure that we're talking about, honestly. It can be done, but also in partnership with a couple of countries, we can build that capacity. Of course, you can calculate that the business case is substantial on the GlobalEye, and we want to capture that market.

Speaker #3: And if we want to keep our lead times and the deliveries needed in the 2030 timeframe and onwards, I think we need to be somewhere between four and six.

Speaker #3: And I should rather sort of build for six, because it's not that sort of complicated if you need to adjust it a bit downwards.

Speaker #3: It's not huge investments in terms of infrastructure that we're talking about, honestly. So it can be done, but also, in partnership with a couple of countries, we can build that capacity.

Speaker #3: But of course, you can calculate that the business case is substantial on the globalized side. And we want to capture that market.

Speaker #3: But I won't go into saying specific numbers on it. But I'm confident that we can now go a bit further than the four per year that we talked about earlier.

Micael Johansson: I won't go into saying specific numbers on it. I'm confident that we can now go a bit further than the four per year that we talked about earlier.

Jakob Markin: Okay.

Jakob Marken: Okay.

Speaker #3: Good.

Johan Andersson: Good.

Speaker #2: Perfect. That's very helpful. Yes, a short, more technical question: corporate costs were very low here in the quarter, as well as in Q1.

Jakob Markin: Perfect.

Jakob Marken: Perfect.

Johan Andersson: Thank you.

Jakob Markin: That's very helpful. Just a short question, a more technical one. Corporate costs very low here in the quarter as well as in Q1. Should we expect corporate costs to be structurally lower, or can you comment anything about that?

Jakob Marken: That's very helpful. Just a short question, a more technical one. Corporate costs very low here in the quarter as well as in Q1. Should we expect corporate costs to be structurally lower, or can you comment anything about that?

Speaker #2: I mean, should we expect corporate costs to be structurally lower, or can you comment on anything about that?

Speaker #1: Do you want me to take that? No, but I think what you can say is, as a guidance, you can look at the corporate costs; they should be in line with how we reported them last year.

Anna Wijkander: Do you want me to take that? I think what you can say is as a guidance, you can look at the corporate costs that should be in line with how we reported them last year. It was a little bit lower this quarter, again, impacted by both a more profitable business in the Skeldar business and also lower cost for our incentive program, share matching plans.

Speaker #1: So, it was a little bit lower this quarter. Again, impacted by both more profitable business in the scale-up business and also lower costs for our incentive program, share matching plans.

Speaker #2: Okay. Thank you.

Jakob Markin: Okay. Thank you.

Jakob Marken: Okay. Thank you.

Speaker #3: Thank you very much. I think we have a final question here on the web interface, and it’s related to you—that you have made a number of investments in AI companies, Helsing, and some other stakes that you have.

Johan Andersson: Thank you very much. I think we have a final question here on the web interface. It's related to that you have made a number of investments in AI companies, Helsing and some other stakes that you have. What are you getting in return for this, and how do you view them long term?

Speaker #3: What are you getting in return for these, and how do you view them long-term? Well, it's not sort of an equity investment in itself.

Micael Johansson: Well, it's not an equity investment in itself. That is not important part, so to say, to have a share like 5% to 10% in an AI company is maybe sort of not what we're looking at. It's not a financial investment, but of course, that can be good as well. It's more connected to a partnership with a company to create a shortcut of skillful people that can add both AI stacks to our platforms and applications in a speedier way than if we build them ourselves. That's the key, really, to get a shortcut into something where they already built something that fits really well with our command and control systems or with our AI agents that we need to use in our platforms. That's the reason. There are a number of them that's really good in Europe today.

Speaker #3: That is not an important part, so to say. To have a share like 5% or 10% in an AI company is maybe sort of not what we're looking at.

Speaker #3: So, it's not a financial investment—but of course, that can be good as well. But it's more connected to a partnership with a company.

Speaker #3: It creates a shortcut of skillful people that can add both AI stacks to our platforms and applications, in a speedier way than if we build them ourselves.

Speaker #3: So that's the key, really—to get sort of a shortcut into something where they've already built something that fits really well with our command and control systems, or with our AI agents that we need to use in our platforms.

Speaker #3: So that's sort of the reason. And there are a number of them that are really good in Europe today.

Speaker #2: Good. Thank you. Operator, do we have any final questions on the telephone conference?

Johan Andersson: Good. Thank you. Operator, do we have any final questions on the telephone conference?

Speaker #1: Yes, we have a question from the line of Henrik Hintze from ABG. Please go ahead.

Operator 2: Yes. We have a question from the line of Henrik Hindse from ABG. Please go ahead.

Operator: Yes. We have a question from the line of Henric Hintze from ABG. Please go ahead.

Speaker #4: Hi, this is Henrik at ABG. So, just a quick question on dynamics from me. Q2 was a pretty strong quarter for sales. I was just wondering if you could give us any detail on the phasing of deliveries and dynamics this year.

Henrik Hindse: Hi, this is Henrik at ABG. Just a quick question on Dynamics from me. I was just wondering if you could give us any detail on the phasing of deliveries and Dynamics this year. You previously sometimes commented if it's been a bit higher or lower in a specific quarter.

Henric Hintze: Hi, this is Henrik at ABG. Just a quick question on Dynamics from me. I was just wondering if you could give us any detail on the phasing of deliveries and Dynamics this year. You previously sometimes commented if it's been a bit higher or lower in a specific quarter.

Speaker #4: You previously sometimes commented if it's been a bit higher or lower in a specific quarter.

Speaker #3: Well, again, I think you have to look upon dynamics not on a specific quarter, because deliveries are related to, of course, deliveries. Then you recognize revenue when you actually deliver.

Micael Johansson: Well, again, I think you have to look upon Dynamics as not on a specific quarter because deliveries are related to, of course, deliveries. You recognize revenue when you actually deliver, and that's a bit batch-like happening now and then. Of course, they have many deliveries to do. They have a huge backlog. The demand in the market is still extensive. That's also different in different quarters. They are definitely moving in the right direction and margins are really good, almost still 20%, which is higher than the mid double-digit margins that I've talked about, but they're doing really well right now. It fluctuates a bit between quarters, but there's nothing new in the trend that we can see or want to highlight related to Dynamics.

Speaker #3: And that's a bit batch-like, happening now and then. Of course, there are many deliveries to do. They have a huge backlog. And I did them on, and the market is still extensive.

Speaker #3: So that's also different in different quarters. So they are definitely moving in the right direction. And the margins are are really good. Almost still 20%, which is higher than the midterm mid double digit margins that I've talked about.

Speaker #3: But they're doing really well right now, so it fluctuates a bit between quarters. But there's nothing sort of new in the trend that we can see or want to highlight related to the dynamics.

Speaker #3: I'm really confident with that that business area and there are I mean, that's where we have lots of capacity investments coming more and more into play as well.

Micael Johansson: I'm really confident with that business area, and that's where we have lots of capacity investments coming more and more into play as well, which adds to the capability of deliveries.

Speaker #3: Which adds to the capability of deliveries.

Speaker #4: Yeah, I mean, I guess that's sort of what I'm getting at. Would you say that the Q2 figure was maybe a bit stronger because of certain deliveries, or is it more a result of capacity coming online that you see this strong Q2 figure?

Henrik Hindse: Yeah, I guess that's sort of what I'm getting at. Would you say that the Q2 figure was maybe a bit stronger because of some certain deliveries, or is it more a result of capacity coming online that you see this strong Q2 figure?

Henric Hintze: Yeah, I guess that's sort of what I'm getting at. Would you say that the Q2 figure was maybe a bit stronger because of some certain deliveries, or is it more a result of capacity coming online that you see this strong Q2 figure?

Speaker #3: I wouldn't regard it as—if you look at orders, I mean, even though if you look at the half year, it's like SEK 5 billion less than the comparable half year last year.

Micael Johansson: I wouldn't regard it as. If you look at orders, even though if you look at H1, it's SEK 5 billion less than the comparable H1 last year. That doesn't worry me at all, because I know the pipeline and timing on contracting. The deliveries are doing well. They can continue in this direction, of course they can. I don't want to detail exactly when each and every one delivery is all. I wouldn't look at the quarters especially fantastic when it comes to the growth side. They have a lot in the backlog, SEK 80 billion plus, so there are lots of deliveries, so they should do numbers like this.

Speaker #3: That doesn't worry me at all, because I know the pipeline and the sort of timing on contracting. The deliveries are—they're doing well. They can continue in this direction.

Speaker #3: Of course, they can. But exactly, I don't want to detail exactly when each and every one delivery saw. But I wouldn't look at the quarters as especially fantastic when it comes to, sort of, the growth either.

Speaker #3: They have a lot in the backlog—over $80 billion. So there are lots of deliveries, and they should do numbers like this.

Speaker #1: The only thing maybe to add on that is, Norma, for Q3. We have the vacancy period, and that goes for everyone. But we deliver projects as we have in dynamics; they are often impacted by the vacancy period.

Anna Wijkander: The only thing maybe to add on that as normal for Q3, we have the vacancy period, and that goes for everyone, but with delivery projects as we have in Dynamics, they are often impacted by the vacancy period.

Speaker #1: But. Yeah.

Micael Johansson: Yeah, that could happen in Q3.

Speaker #3: But that then I would in Q3 I will say this is a lucky Q3 and then there are normally Q4 that is extremely good for dynamics as you know.

Anna Wijkander: Yeah.

Micael Johansson: In Q3, I will say this is like a Q3, and then normally a Q4 that is extremely good for Dynamics, as you know. That's how it varies between the quarters. I look more on a yearly, more long-term basis.

Speaker #3: So that's how it varies between the quarters. I look more at it on a yearly, more long-term basis.

Speaker #2: Good.

Johan Andersson: Good.

Speaker #4: Okay. Very quick. Thank you.

Anna Wijkander: Okay.

Johan Andersson: A quick-

Anna Wijkander: Thank you

Speaker #2: A quick one here from the from the web. You talked a lot about global eye and the ramp up there. Where are we in terms of gripen and how do you see how do you see that also with new contract coming in here?

Johan Andersson: A quick one here from the web. You talk a lot about GlobalEye and the ramp-up there. Where are we in terms of Gripen, how do you see that also with new contract coming in here?

Speaker #3: Also ramping up. I mean, I would say we are aiming for somewhere between 25 and 30 aircraft a year, and that's sort of doubling almost the capacity of where we are right now.

Micael Johansson: Also ramping up. I would say we are aiming for somewhere between 25 and 30 aircrafts a year, that's doubling almost the capacity that where we are right now. We're moving quickly in that direction. Confident with the investments we're doing to manage that. That's also important, absolutely.

Speaker #3: So we're moving quickly in that direction. We're confident with the investments we're making to manage that, so that's also important. Absolutely.

Speaker #2: Excellent. And operator, I think we have time for a final question for from the telephone conference. Do we do we have any any a a final one from there?

Johan Andersson: Excellent. Operator, I think we have time for a final question from the telephone conference. Do you have a final one from there?

Speaker #1: Yes, we have a follow-up question from Daniel Duerberg from Handelsbanken. Please go ahead.

Operator 2: Yes, we have a follow-up question from the line of Daniel Djurberg from Handelsbanken. Please go ahead.

Operator: Yes, we have a follow-up question from the line of Daniel Djurberg from Handelsbanken. Please go ahead.

Daniel Djurberg: Thank you, operator. It was me, I only want back to notice before about the unmanned airborne early warning system that you tried out with General Atomics in the quarter. What you can tell us about potential market launches or when this could hit the market? Thanks.

Speaker #4: Thank you, operator, for squeezing me in. I only would like to note, before, about the unmanned airborne early warning system that you tried out with General Atomics in the quarter.

Speaker #4: What can you tell us about potential market launches, or when this could hit the market? Thanks.

Speaker #3: Yeah, we are test flying it as we speak. And we are pushing hard to get it into the market, of course. And it is for sale.

Micael Johansson: We were test-flying it as we speak, we are pushing hard to get it into the market, of course, it is for sale already. That's obviously the case. It's a complementary capability to a GlobalEye capability, I would say. It's not exactly the same, it's a great surveillance capability. We're getting there quickly. Of course, if you look upon it from a buyer's perspective, MQ-9B as a platform is quite attractive in the marketplace. To have different capabilities integrated to it is, of course, something we will benefit from, having our airborne early warning pods to attach to it. I look forward to see that coming into the market. It's not really there yet. We are still working test flights, we are prepared to start talking contracts with people.

Speaker #3: Already. So that's obviously the case. And then it's a complementary capability to a GlobalEye capability, I would say. So it's not exactly the same, but it's a great surveillance capability.

Speaker #3: So we're getting there quickly. And then, of course, if you look upon it from a buyer's perspective, MQ-9B as a platform is quite attractive in the marketplace.

Speaker #3: And then to have different capabilities integrated to it is, of course, something we will benefit from, having our sort of airborne early warning pods to attach to it.

Speaker #3: So I I I look forward to see that being coming into the market. But it's not really really really there yet. We we are still working test flights but we are sort of prepared to start talking contracts with people.

Speaker #4: Yeah. And would it prepare to, okay.

Daniel Djurberg: Yeah.

Johan Andersson: Okay, excellent.

Daniel Djurberg: Okay.

Speaker #2: Okay. So I think with that, we will end the Q&A session and also the presentation for today. So, we thank everyone for listening in and joining.

Johan Andersson: Okay, I think from that, we will end the Q&A session and also the presentation for today. We thank everyone for listening in and joining, and please reach out to the investor relations team if you have any other follow-ups or any other comments on the report. Thank you very much.

Speaker #2: And please reach out to the Investor Relations team if you have any other follow-ups or comments on the report. Thank you very much.

Micael Johansson: Thank you.

Operator 2: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. Goodbye.

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. Goodbye.

Q2 2026 Saab AB Earnings Call

Request DemoDemo

Saab

Earnings